Just got an email from a journalist who wanted to know my thoughts on the downside of Google Adsense. Here is my response (keep in mind I’m responding to an email which I’m not going to publish in case this doesn’t make total senseit’s half of the telephone call, so to speak

Dear NAMEREMOVED,

1. we only use Google right now

2. Clickfraud=non issue/manageable issue for folks like Google. It’s so easy to get caught and it’s so hard to get a Google Adsense account, so this will never be a major issue (i.e. you need a social security number or a tax id numbernot cheap to get!). Plus, advertisers factor some bad clicks into their buys and, as a result, everyone pays a little less per click (think 1-5%). Clickfraud is probably less then credit card fraud, and it’s delt with the same wayeveryone takes an unnoticeable hit.

3. The ads are absurdly targeted in my experience people look at them like content and they don’t even mind them. In fact, I see them as value added. As such, it’s a revolution in advertisingfor the first time since the Superbowl people want the ads!!! It’s advertising nirvana for everyone involved: advertiser, publisher, and Google.

4. There is no conflict between Google Adsense and display ads for us as a publisher. Display advertisers want more then just text links on a site like Engadget and Autoblogthey want their brand showcased. They want a big, beautiful Flash animation of their car or cell phone for people to take in. You can’t get that impact with text ads. Those advertisers also want control over where and when they run. With Google Adsense they are not guaranteed to get anylet alone 100%of the ad space. Finally, we run our display advertisers first then Google Adsense and other networks. So, the same way Google has a marketplace where the highest paying person goes to the top we have a marketplace where the highest playing person goes to the top.

5. Text based advertisers find out about our site because of Google Adsense and then they wind up buying display ads. So, Google is doing free marketing for us in a way.

I’ve found no downside as a publisherzero. I keep telling that to the media and tey keep writing stories about how this model has problems. It doesn’t. This is a genuine revolution and the fraud issue is a construct of the media looking for the downside in Google’s model.

For now there might not be a downside something the media can’t handle.

Now, Google stock price? I have no idea.

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best j